Tuesday, September 21, 2010

MARKET MOVING TOO FAST - VAUATION OVER STRECHED - THE BUBBLE WILL BURST ONE DAY.

Although, the India growth story remains intact, the market is moving too fast, mainly due to liquidity factor. When the party ends, the correction will be sharp and deep. Small investors should follow cautious approach. Follow the 65:35 principle, in the over heated market. Stay invested only to the extent of 35%, keep the rest in bank.    India is one of the market which offers good opportunity for FIIs / PE funds, hence the rush. However, the music has to stop one day.

The sector, that is likely to out perform the market / index are Financial services including PSU banks, Infra, Telecom and Information Technology.  Be stock specific.

3 comments:

  1. can i chat with u?
    am new to share market..i want to know more


    pls send me ur mail id


    akhileshb2009@gmail.com

    ReplyDelete
  2. Hi Prasanna..

    Can u plz tell me the prospects of BSEL infra..
    Its net profit margin,P/E & EPS are in -VE values..
    Last dividend paid on 30/6/2008..

    whts ur advise..invest or stay away ???

    Thanks in advance.

    -Nirmal.

    ReplyDelete